Federal Income Taxes
Pursuant to the President’s emergency declaration, the Treasury Department and the IRS issued Notice 2020-18. The due date for filing Federal income tax returns and making Federal income tax payments due April 15, 2020, is automatically postponed to July 15, 2020. Taxpayers (including individuals, corporations, trusts, estates, partnerships, associations, or companies) can defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest.
Taxpayers do not have to file extension Forms 4868 or 7004 to take advantage of the later date. The deferral is available solely with respect to Federal income tax payments, including quarterly estimated tax payments for self-employed individuals. The deferral does not apply to employment taxes or state and local taxes.
Virginia Sales Taxes
The Governor issued a statement stating that Businesses impacted by COVID-19 can request deferral of payment of state sales tax due March 20, 2020, for 30 days. When granted, such payments can be made with a waiver of any penalties.
Virginia Income Taxes
The Governor has requested that the Department of Taxation extend the due date for payment of Virginia individual and corporate income taxes to June 1, 2020. Filing deadlines remain the same, and interest will still accrue, so taxpayers who are able to pay by the original deadlines should do so.